Monday, March 27, 2017

Canada Pot Stocks Surge After Report Of Legalization Date

Government to introduce legislation April 10 week: CBC report; Recreational sales poised to be legalized by July 1, 2018.

By Jen Skerritt and Aoyon AshrafBloomberg

March 27, 2017

The frenzy surrounding Canada’s marijuana market intensified Monday after a report the government will unveil plans to legalize sales for recreational use in April.

Prime Minister Justin Trudeau’s government will introduce legislation the week of April 10 to legalize marijuana by July 1, 2018, according to a report from the Canadian Broadcasting Corporation. David Taylor, a spokesman for Justice Minister Jody Wilson-Raybould, declined to comment on the reported timelines. He reiterated a government pledge to unveil a proposed law by spring.

The value of Canada’s pot stocks have soared amid investor optimism that recreational sales, which Canaccord Genuity Group Inc. said in November could reach C$6 billion in sales annually by 2021, may start as early as 2018. Canopy Growth has seen its share price rise more than 300 percent in the past 12 months, while Aurora has climbed more than 400 percent.